Sheridan Company is considering the replacement of a piece of equipment with a newer model. The following data has been collected:

	Old Equipment	New Equipment
Purchase price	$282000	$464000
Accumulated depreciation	112800	- 0 -
Annual operating costs	321000	321000

If the old equipment is replaced now, it can be sold for $76900. Both the old equipments remaining useful life and the new equipments useful life is 5 years. The company uses straight-line depreciation with a zero salvage value for all of its assets. The net advantage (disadvantage) of replacing the old equipment with the new equipment is

$(90000)

$112800

$76900

$(132100)